Stock Analysis on Net
Stock Analysis on Net

Walmart Inc. (NASDAQ:WMT)

Common-Size Income Statement 

Walmart Inc., common-size consolidated income statement

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12 months ended: Jan 31, 2026 Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -75.79 -75.87 -76.27 -76.54 -75.56 -75.70
Gross profit 24.21% 24.13% 23.73% 23.46% 24.44% 24.30%
Membership and other income 0.96 0.96 0.85 0.89 0.88 0.71
Operating, selling, general and administrative expenses -20.94 -20.74 -20.38 -20.98 -20.75 -20.94
Operating income 4.22% 4.35% 4.20% 3.37% 4.57% 4.06%
Interest expense, debt and finance lease -0.40 -0.40 -0.42 -0.35 -0.35 -0.42
Interest income 0.05 0.07 0.08 0.04 0.03 0.02
Interest, net -0.34% -0.33% -0.33% -0.31% -0.32% -0.40%
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 -0.42 0.00
Other gains and (losses) 0.29 -0.12 -0.47 -0.25 -0.53 0.04
Income before income taxes 4.17% 3.90% 3.40% 2.81% 3.29% 3.70%
Provision for income taxes -1.02 -0.91 -0.87 -0.94 -0.84 -1.24
Consolidated net income 3.15% 2.99% 2.53% 1.86% 2.46% 2.47%
Consolidated net (income) loss attributable to noncontrolling interest -0.05 -0.11 -0.12 0.06 -0.05 -0.04
Consolidated net income attributable to Walmart 3.10% 2.88% 2.41% 1.93% 2.41% 2.43%

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).

The common-size income statement reveals several noteworthy trends over the six-year period. Gross profit as a percentage of net sales experienced initial growth, followed by a decline, and then a recovery. Operating income demonstrated volatility, while net income attributable to Walmart showed a generally positive trajectory, albeit with fluctuations.

Profitability
Gross profit margin initially increased from 24.30% to 24.44% between 2021 and 2022, then decreased to a low of 23.46% in 2023. A subsequent recovery was observed, reaching 24.21% by 2026. Operating income margin exhibited more pronounced fluctuations, rising from 4.06% to 4.57% in the first two years, then falling to 3.37% in 2023 before recovering to 4.22% in 2026. Net income attributable to Walmart margin followed a similar pattern, increasing from 2.43% to 2.41%, decreasing to 1.93%, and then increasing to 3.10% over the period. This suggests sensitivity to cost of sales and operating expenses.
Cost Structure
Cost of sales remained relatively stable, fluctuating between -75.56% and -76.54% of net sales. Operating, selling, general and administrative expenses also showed relative stability, ranging from -20.38% to -20.98% of net sales. The consistency in these expense ratios suggests effective cost management, despite the fluctuations in overall profitability.
Non-Operating Items
Membership and other income consistently contributed a small but growing percentage of net sales, increasing from 0.71% to 0.96%. Interest expense, net, remained relatively consistent, fluctuating between -0.31% and -0.42%. A loss on extinguishment of debt was recorded in 2022 (-0.42%), but was absent in other years. Other gains and (losses) were volatile, ranging from -0.53% to 0.29%, indicating potential impacts from infrequent items. These non-operating items had a relatively small, but noticeable, impact on overall income before income taxes.
Tax Rate
The provision for income taxes as a percentage of net sales decreased from -1.24% in 2021 to -0.84% in 2022, increased to -0.94% in 2023, and then decreased again to -0.87% in 2024, before increasing to -1.02% in 2026. This suggests some variability in the effective tax rate.
Net Income Attributable to Noncontrolling Interest
Consolidated net (income) loss attributable to noncontrolling interest was consistently a small percentage of net sales, fluctuating between -0.12% and 0.06%. The impact of noncontrolling interests on overall net income attributable to Walmart was minimal.

Overall, the period demonstrates a business capable of maintaining relatively stable cost structures while navigating fluctuations in gross profit and operating income. The ultimate result is a generally improving trend in net income attributable to Walmart, despite some volatility in intervening years.

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